More than half of UK councils are set to go bankrupt in next Parliament

Last Updated: February 28, 2024By Tags: , , , , ,

Councils are set to increase their tax bill for residents, but that won’t stop them going bankrupt.

Remember that crisis in local council funding This Site mentioned the other day?

Well, more than half of the UK’s councils have warned that they’ll run out of money during the next Parliament if central government doesn’t change its funding regime – whichever party/s form it:

The Local Government Information Unit (LGIU) has found that 51% of senior officials across the UK think their councils will go bankrupt in the next five years unless major reform is introduced.

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The LGIU report also suggested that even those who stay in the black will face some bumps in the road.

Just 4% of nationwide councils feel confident in the current local government finance system – and a mere 6% are happy with Downing Street’s current approach to it.

Nine in 10 councils are looking at hiking fees on parking and environmental waste or raising council tax to cope with looming bankruptcy, while one in 10 will cut SEND services – Special Educational Needs and Disability – as well as children’s care services.

A fifth want to sell their publicly-owned assets, while more than half are relying on their financial reserves to stay afloat.

And – oops! Still no ideas from either the Tories or the other Tories Labour. Business as usual from those two, then.

Source: UK Councils Issue Bleak Bankruptcy Warning For The Next Government | HuffPost UK Politics

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